The AI Fraud Accountability Act creates new federal criminal and civil penalties for using deepfakes and other AI-generated digital impersonations to commit fraud. Specifically, it makes it illegal to use realistic synthetic audio or video of real or fictional people in interstate communications with intent to defraud someone out of money or valuables, with penalties of up to three years in prison and fines. The Federal Trade Commission gains enforcement authority to pursue these violations as unfair or deceptive practices, and convicted offenders must forfeit any proceeds or property used in the scheme. The bill also establishes a working group led by the National Institute of Standards and Technology to develop best practices for detecting and preventing digital impersonation fraud, with recommendations to be published within one year and updated annually through 2036. Additionally, it directs the FTC and Justice Department to coordinate with law enforcement in the top ten countries where these fraud schemes originate to improve international enforcement. The law includes exemptions for legitimate law enforcement and intelligence operations, as well as for parody, satire, and journalism.
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